2. hapzi ali, et al., 2016, model of employee performance, ijer, mercu buana university

IJER © Serials Publications13(3), 2016: 707-719

ISSN: 0972-9380

MODEL OF EMPLOYEE PERFORMANCE :THE EMPIRICAL STUDY AT CIVIL SERVANTSIN GOVERNMENT OF WEST JAVA PROVINCE

Nandan Limakrisna1, Zulki Zulkifli Noor2 and Hapzi Ali3

Abstract: The purpose of this research is to analyze and get empirical evidenceoforganizational culture, organizationalclimate influence, and leadership style onorganizational commitment and it’s implication the civil servants performance inlocalgovernment, West Java Province partially and or jointly. The population of governmentcivilservant in this research amounted 6314 people. Research method used in this research isdescriptive survey methods and survey explanatory with sample size use the regulation1 : 5 of 200 respondents, and data analysis methods that used was SEM (Structural EquationModeling). Research results showed that organizational culture, or ganizational climateand leadership style partially and jointly have positive and significant impact onorganizational commitment with influence of 55 percent while the rest of 45% wascontributed by other factors, but partially organizational culture most dominant have aneffect on to organizational commitment. Organizational culture, organizational climate andorganizational commitment partially and jointly have positive and significant impact tothe performance officials’ of 80% while 20% the rest was contributed by other factors, butpartially organizational commitment partially most dominant influence to the employeeperformance.

Keywords: Organizational culture, Organizational climate, Leadership style, Organizationalcommitment, Employee performance.

1. INTRODUCTION

Indonesia is the one of country that has the fourth number most people in the worldafter China, India, and USA. That indicates there is a great potential human resourcedevelopment, especially if the quality of human resources’ increased, so it will give asignificant support for the progress Indonesia’s development. Indonesian humanresources is abundant and is the basis of national development in all fields, therefore

1 Doctor of Management, Economy Faculty, University of Persada Indonesia YAI, Jakarta, Indonesia2 Economic Faculty, University of Winayamukti, Bandung. Indonesia.3 Economic Faculty, University of Mercubuana , Jakarta. Indonesia.

708 Nandan Limakrisna, Zulki Zulkifli Noor and Hapzi Ali

the Indonesian government since the new order has pioneered an increase in theproductivity of human resources, namely by increasing the performance of humanresources itself . The launching of the program is based on the idea that productivitydetermines the formation of a national growth rate of the index as well as the mostsensitive indicator of economizing process and as a primary gauge of economicprogress of a nation.

Remember that human factor is a prime mover for a total resources to others inimproving productivity, which also become a challenge in Long-term DevelopmentSecond Stage (PJPT II) is human resource development that was qualified to have ahigh level of performance in every sector development and have the horizonperspective intellective in that area. The Challenge this requires a change inmanagement attitude to labor, if all labor are seen as short-term costs (short capitals)but for now seen as long-term investment whose existence is required for smoothsuch organizations. Along with the development of technology and economy, the rolepeople not only limited as supervisor labor that comes from physical strength, but themore important is that can use the horizon thinkin to plan and productive activities.

Then in the face globalization era, his splendor effort to improve its humanresources, various cases and issues that indicate symptoms experienced quality. Abuseof position, a decrease in discipline, and various other irregularities such as therecruitment of civil servant officer (PNS) which is not an end, the career path of non- transparent, the proliferation of corruption and collusion, so normatively consideredimproper behavior, it sticks through the surface of news from various so that the massmedia consumption .

Many experts are trying to unravel reasons why civil servants have poorperformance. The average of the opinions of experts lead to the theory of Maslow’sneeds , which concludes that a person would do or not do something very dependenton needs (needs ), if someone felt the need and can fulfill their needs by doing anactivity, it will perform the activity with all the potential it has. However, if an activitydoes not significantly affect the life, it tends not to be done. If the theory is applied tocivil servants, less will be able to respond why civil servants have poor performance,which in turn affects the performance of the government.

Law No. 32 of 2004 on local government article 129, which reads : Paragraph (2)Civil Service management area as referred to in paragraph (1) shall include thedetermination of formation, procurement, appointment, transfer, dismissal, thedetermination of retired, salary, benefits, welfare, rights and obligation , legal standing,competence development, and control number. According to the provisions containedin Article 129 of Law No. 32 Year 2004 on Regional Government, it showed clearlyand has a strong legal foundation, as guidance in governance and service to society,that the regional government has the authority to pursue the policy of welfare forcivil servants who were on duty and work in the Local Government’s environmentand exist various forms.

Model of Employee Performance : The Empirical Study at Civil Servants in Government... 709

So with the issuance of regulations local government act relating to the formation,procurement,appointment, transfer, dismissal, the determination of pension, salary,benefits, welfare, rights and obligations, legal position, the development ofcompetencies that everything is a form of government support to employees, it shouldbe government performanceof government able to improve the performance of localgovernment in all sector, but in fact the performance tends to decline. Based on theaccountability report on the result government performance region government(LAKIP) government West Java Province in 2013 by referring to high assessment LAKIPfrom the Ministry of State Apparatus and Bureaucratic Reform” KementerinAparaturNegara danReformasiBirokrasi” (PANRB (http://www.menpan.go.id)) shows thatperformance accountability of government entered the category less good (D) and isquite good (C) reached 38.24%, were categorized as good enough (CC) was 38.24%,while the category as well to satisfy (B, A and AA) only reached 23.53%. In addition,the low performance achievement institutions in governmentcan be seen also fromthe performance achievement of the low institutions based on average assessmentinstitutions in West Java Province that was under 80.

Mahmood, Iqbal and Samsaa (2014 : 86) in the research said that

“Employee Performance is most important factor in an organization success therefore, there is needto adopt effective human resources strategies that aim to improve employee performance and createsthe culture of high performance in any organization based on human resource practices”.

That employee performance is most important factors in the successfulorganization. Thus, there is a need to adopt a strategy human resources that effectivewhich aims to improve performance and create the culture high-performance in theorganization resources practices anything based on human beings. Based on that claim,the low accountability performance of government tends to be caused by the low ofemployee performance. The low of employee performanceof government that isindicated in employee assessmentthat carried out periodically (Per year). Based onthe employee performance data evaluation in each government of governmentinstitution during the time period two consecutive years (2011-2012) with employeeperformance evaluation that refer to the government regulation No. 10 The year 1979employee work achievement assessment of a Civil Servant) that is generally showinga high performance at the end of 2010 - 2011 rose by 2.41% and 2011- 2012 experienceda decrease in the amount of 3.90% and at the end of 2012- 2013 experienced a decreasein the amount of 1% in values with classification is very good, then at the end of 2010-2011 rose by 3.72%, while at the end of 2011- 2012 was down 5.19 %, and at the end of2012- 2013, experienced significantly by 9.11% with types of good value. Then the lowperformance of civil servants in government also indicated by the low level disciplinetime, attendance rate of punctuality and attendance of employees. This is shown basedon observation result directly researchers (2013) showing a high level of employeedelay in some employers’ institutions, which reached 15.55% in 2010 and increasedreached 18.35% in 2011 and absence high enough without explanation (alpha) duringthe period of 2010-2013.


Mguqulwa (2008:72) put forward based on the result Applicants that thecommitment organizations have been closely intertwined with close ties to employeeperformance, the strong commitment of the organization, the employee’s performanceis increasing.Then based on the research results Memari, Mahdieh and Barati (2013:164) menyatatakan that “the results revealed a positive relationship between organizationalcommitment and employees’ job performance”. Based on these results statement, the poorperformance of employees in government tends to be caused by low levels oforganizational commitment. It is indicated based on the observation of the researcher(2013) on several employees who indicate that the level of pride as a civil servant ingovernment which only reached by 37.50%, the level of emotional attachment to theorganization 35.00%, the level of dedication to work employees in the organization30%, and the level of confidence in the identity of employees 27.50%.

Meanwhile Manetje and Martin (2009:87) proposed a finding from his researchthat a good organizational culture can enhance the organizational commitment strongso as to improve organizational performance. Regarding on the statement above, thelow employee performance of civil servants in government still tend to be caused alsoby the lack of organizational culture in the of government. Lack of organizationalculture in government institutions shown by direct observation (2013) is characterizedby a lack of passion and spirit of employees in completing work tasks, delay workhabits, work time used to talk about things that have nothing to do with work , lowemployee initiatives in the works that seem to always wait for instructions fromsuperiors, employee invention egoism in doing the job, the employee is lesscommendable behavior to be an employee, a lack of understanding of the values ofthe organization and the majority of employees only “status” as employees not as agovernment employee’s job responsibilities in serving the community.

According to Imran Rabia et. all. (2012:1455) based on the result of research that“The results reveal positive and significant impact of transformational leadership and organizationalclimate on employee performance”. That shows a positive and significant transformational andclimate organization to performance”.

Based on that statement, the low performance of civil servants ingovernmentinstitutions tend to be caused by a lack of organizational climate. This isindicated by not conducive workplaces such as lack of mutual trust among employees, policies and regulations have not been able to be implemented consistently in dealingwith employee issues that arise jealousy horizontal aperture level civil servants,promotion are not implemented normative, as well as with the emergence of somevertical conflict between employees with structural officials in government andhorizontal conflicts among employees, to strike the employees become a solution todistribute their aspirations.

Paracha Umer et. all. (2012:1) based on the research states“that transactional and transformational both are significantly positive associated with Employeeperformance however transactional leadership was more significant then transformational”.


ParachaUmer et all. research results showed that both transactional andtransformational significantly positively related to employee performance butsignificant transactional leadership is more than transformational. Based on theresearch results statement impositions Rabia Imran et. all. (2012; 1455) andParachaUmer et. all. (2012: 1), the low performance of civil servants in governmentinstitutions tend to be caused by the relatively low level of leadership style ingovernmentgovernment, this is indicated by the number of employees are lessunderstanding of the tasks given leadership, lack of providing guidance, lack ofencouragement and motivation to all members / employees in achieving goals,leadership more priority to formal relationships without regard to the informal aspects,so the communication relations seem stiff, lack of attention from leader to employeeswho become subordinates, lack of confidence from leader to its employees, decision-making is always dominated by the understanding unilaterally from the head withoutgoing through the process of coordination previously, do not make subordinates aspartners in achieving the organization’s objectives.

The purpose of this study in this research is to identify and analyze the influenceof organizational culture, organizational climate, and leadership style on organizationalcommitment also it’s implication on employee performance of civil servants (PNS) ingovernment.

2. LITERATURE REVIEW

Organizational Culture

Arnold (2005:625) states that

“that organizational culture is the distinctive norms, beliefs, principles and ways of behaving thatcombine to give each organization its distinct character”.

That organizational culture is a typical norms, beliefs, principles and ways of behavingthat combine to give each character a different organization. Harrison (2003: 11) statesthat organizational culture is “distinctive constellation of beliefs, values, work styles, andrelationships that distinguish one organization from another”. That organizational cultureis a typical constellation of beliefs, values, work styles, and relationships that distinguishone from another organization. In other words, cultural organizations including thenature of the organization that provides a particular climate. Hellriegel et al. (2004:365)states that elements of culture and their relationships in an organization creates aunique pattern that is part of the organization, creating a culture of the organization.Some elements of organizational culture according Hellriegel et al.. consists of abureaucratic culture, the local culture (clan culture) and adhocracy culture.

Bureaucratic culture is a kind of organizational culture that respects the rules,hierarchical coordination, formalization and standard operating procedures, withlong-term problems into efficiency, predictability and stability. Local culture (clanculture) is the attribute of the type of organization is tradition, loyalty, teamwork,


personal commitment and self-management. Organizations focus on their attentioninternally, but their formal control flexible. Adhocracy culture is a form of culture thatis characterized by high levels of risk taking, dynamism and creativity.

Organizational Climate

Simamora (2004:81) states that the organizational climate is the internal environmentor organizational psychology. Organizational climate affect human resources practicesand policies adopted by members of the organization. Lussier (2005: 486) says that theorganizational climate on employee perceptions regarding the quality of theorganization’s internal environment is relatively perceived by members of theorganization which in turn affects their behavior. Then Lussier (2005: 487) took a pointthat organizational climate include:

1. Structure; the level of perceived coercion of employees because of the rulesand procedures are structured. Organizational objectives, level ofresponsibility, the values of the organization.

2. Responsibility; an organization’s level of supervision imposed and perceivedby the employees. Where the quality and form of supervision, direction andguidance received from superiors to subordinates

3. Support; related to the support for employees in performing organizationaltasks. Matters relating to the support and relationships among co-workers arefeeling is mutual help between management and employees, with moreemphasis on the need of mutual support between superiors and subordinates.

4. Warmth; with regard to the level of employee satisfaction with regard torelationships within the organization. Feelings toward a friendly workingatmosphere and more emphasis on hospitality or friendship conditions ininformal groups, as well as good relationships between colleagues, theemphasis on the influence of friendship and informal social groups.

5. Organizational identity and loyalty; a sense of pride associated with theexistence of the organization and the loyalty shown during his tenure. Degreeof loyalty towards the achievement of organizational goals.

6. Risk; related to employees given the space to do or take risks in carrying outthe task as a challenge

Leadership Style

Bass and Avolio (1994) in Munandar (2001) define style of his leadership so far in twotypes, namely style transformational and transactional leadership style. StyleTransformational is interaction between the leader and the employees are marked bythe influence of employees become to change on someone with who think that theyare capable and insightful work achievement and trying to reach a high and high


quality. Transactional leadership styleis leadership that emphasizes on transaction orexchanges between leaders, colleagues and his subordinates. This Exchange is basedon a discussion between leader with the related parties to determine what is neededand how specification conditions and wages/gifts if subordinate conditions for a fixedterm.

Yukl (1989:204) in Ahmad and Gelaidan (2011:3-4) states that

‘Transformational leadership hasbeen defined as “the process of influencingmajor changes in theattitudes andassumptions of organization members andbuilding commitment for theorganization’smission or objectives.Transactionalleadership is expected to be associated withemployeecommitment to organizationalchange”.

Transformational leadership has been defined as a process that affects a majorchange in attitudes and assumptions members of the organization and to buildtheorganization’s commitment to achieve the goals of the organization, while thetransactional leadership is expected to be associated with employee commitment toorganizational change.

Organizational Commitment

Gibson et al.. (2012: 182) stated commitment as a sense of identification, loyalty, andengagement disclosed by an employee of the organization.

This understanding states that the commitment is most hiring on the values of theorganization(identification), engagement(involvement)psychologically and loyalty(loyalty). This means that employee commitment to the organization has three aspects,are;

1. identification of which has materialized in the form of trust employees to theorganization;

2. loyalty it show positive attitudes and behavior in the organization, employeeswill possess souls who still defended his organization, seeks to improveachievement, and have confidence that is sure to help realize the goals of theorganization;

3. involvement it will cause a sense of belonging for the employees of theorganization.

Allen and Grisaffe (2001) in Jha (2011:266), organizational commitment describethe psychological state that characterizes the employee relationship with theorganization for which they work and which has implications for their decision toremain with the organization . Mayer and Allen (1991) in Jha (201: 266 ) has identifiedthree types of organizational commitment, namely affective commitment , continuouscommitment and normative commitment .


Employee Performance

According to Gomes (2003:39) as the employee’s performance record production resultsin a specific job function or activity during a specific time period. So performance isthe level of success achieved by the employee in doing what one work activities withreference to the tasks to be performed. Furthermore Mangkunagara (2009:9) statesthat the employee’s performance is the result of the quality and quantity of workachieved by someone employees in carrying out their duties in accordance with theresponsibilitiesgiven to the employee.

According to Gomes (2003:45) put forward some type performance as follows:

1. Quantity of work describes the amount of work that is obtained in a specifiedtime period.

2. Quality of work is quality of work achieved under the terms of suitability andreadiness.

3. Job knowledge is the breadth of knowledge and skills on the job.

4. Creativeness is the authenticity of the ideas raised and actions to complete thejob.

5. Cooperative is the willingness to cooperate with others (fellow members ofthe organization).

6. Dependability is awareness and trustworthy in terms of attendance andcompletion of work.

7. Initiative is the passion to perform new tasks in enlarging its responsibilities.

8. Personal qualities is relating to the personality, leadership, hospitality, andpersonal integrity.

Conceptual Framework

Figure 1: Framework and Research Hypotheses


3. METHODS

The kind of this research is descriptive and verification, the research method used isdescriptive survey method and explanatory survey. Type of investigation in this studyis causality. The unit of analysis in this study is the staff of government of governmentin West Java Province. Time horizon in this study is cross-sectional, for exampleinformation from the majority population (the sample) were collected directly fromthe location empirically, with the aim to know the opinion of the majority populationof the object being studied.

Operational definitions of variables are intended to clarify the variables to bestudied, which consists of:

1. Cultural Organization (�1) as independent variables.

2. Organizational Climate (�2) as independent variables.

3. Leadership Style (�3) as independent variables.

4. Organizational Commitment (�1) as variable between.

5. Employee Performance ( �2 ) as the dependent variable .

Data Source in this research is the source of secondary data from documentationor report that available in relevant institutions. The primary data in the form oforganizational culture, organizational climate, leadership style, organizationalcommitment, and employee performance sourced from staff of government, West JavaProvince.

In this study, the object of analysis is the level of SKPD accountability with thevalue accountability C and D (more less good and less good), while the population(the unit of analysis) are civil servants in government which is consists of four groups(category I , II, III and IV) which amounts are 1685 employees. The sample size wasdetermined by taking into account the analytical techniques used to test the hypothesisthat structural equation models (structural equation model/SEM). In connection withthe rule of thumb in the SEM, Hair et al.. (2006: 605) states there is no single criterionfor determining the size of the sample (sample size) in SEM, but keep in mind theratio of the sample to the parameters (indicators) in order to achieve a ratio of 1: 5.Based on the rule of thumb in the SEM, so this study used a ratio of 1: 5. This study has40 parameters (indicators), the minimum sample size is 200 respondents to the selectionof the sample population used proportionate stratified random sampling technique.

The analysis method used in this research is the analysis of SEM (StructuralEquation Modeling) using processing software 8:51 lisrel. In analysis methods of SEM,statistical estimation individually tested using a t test. Through output path diagramt-value statistics, t-test results confirm lisrel process complete the test error rate set at5%. Not only individual test, SEM also test the proposed model as a whole system, forexample through conformance test model as known Goodness of Fit Statistics.


4. RESULT AND DISCUSSION

Based on The table 1 above, there are threeíndexgained fitness model has a suitabilityindex (goodfit), are: RMSEA, IFI and CFI. While five index compliance model, whichis under the suitability size good, but still within the scope of the marginal (marginalfit), there are GFI, NNFI, NFI, AGFI and RFI. Marginal fit is the condition of thesuitability of the measurement model under the criterion of absolute fit, as well asincremental fit, but still can be passed on further analysis, because it is close to the sizecriteria for a good fit (Hair, Andersen, Tatham, and Black, 2006:623). Thus it can becontinued in the subsequent analysis.

Table 1The Suitability Test Model

GOF Indicators The Expected Size Estimation Result Conclusion

Size Absolute FitGFI GFI > 0.90 0,85 Marginal FitRMSEA RMSEA < 0.08 0,078 Good Fit

Size Incremental FitNNFI NNFI > 0.90 0,89 Marginal FitNFI NFI > 0.90 0,85 Marginal FitAGFI AGFI > 0.90 0,81 Marginal FitNECESSITY NECESSITY > 0.90 0,82 Marginal FitIFI IFI > 0.90 0,90 Good FitCFI CFI > 0.90 0,90 Good Fit

Source: Result processing with LISREL 51 8.

Table 2Hypothesis Testing

Hypothesis Variables Standardize tcount/Fcount StatisticCoefficient conclusion

H1 Organizational culture � Organizational commitment 0.32 3.57 SignificantH2 Organizational climate � Organizational commitment 0. 22 2.21 SignificantH3 Leadership style � Organizational commitment 0. 30 2.66 SignificantH4 Organizational commitment � Employee performance 0.39 4.14 Significant

Source: Data Processing, 2014 (LISREL 8.51, tcritical = 1.96; Fcritical = 3.84)

According test results show that the direct variable of organizational culture,organizational climate and leadership styles affect the organizational commitmentvariable with a contribution of 55%. Then organizational culture variable,organizational climate and leadership style directly affects employee performancevariable with a contribution of 31.95%. But with through organizational commitment,organizational culture variables, organizational climate and leadership styles affectthe performance of employees with a contribution of 80%. This explanation guardedorganizational commitment is a partial mediating variable of organizational culture,organizational climate and leadership style on employee performance.


So based on the test results and description, the findings from this study is toimprove the employee performance in the government, especially on the dependabilityelement (Y6) is to increase organizational commitment, especially on the elements ofnormative commitment (Y3), where organizational commitment will increase if thegovernment of able to improve organizational culture, especially the adhocracy culturalelements (X3) and supported by the improvement in the leadership style especiallyon leadership transformational style elements and improve the organizational climate,especially in the support element (X6).

5. CONCLUTION

For the conclusion of this research are:

1. Organizational culture partial effect on organizational commitment to thecivil servant in government, with the most dominant organizational cultureelements is adhocracy culture, and weak element is bureaucratic culture.

2. Organizational climate partial effect on organizational commitment to thecivil servantin government, with the most dominant elements of organiz-ational climate is on the support element and the weak element isresponsibility.

3. Leadership style partial effect on organizational commitment to the civilservantin government, with the dominant elements of leadership style is thetransformational elements, and weak on transactional elements.

4. Organizational commitment is partially effect on the employee performanceof civil servants in government, with the most dominant elements oforganizational commitment is the normative elements, and the weak iselement continuously, while the organizational commitment is a variable thatmediates variable employee performance.

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2. hapzi ali, et al., 2016, model of employee performance, ijer, mercu buana university

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